* Futures down: Dow 108 pts, S&P 12 pts, Nasdaq 33 pts
By Tanya Agrawal
July 27 (Reuters) - U.S. stock index futures fell sharply on Monday on concerns about China’s slowing growth in the wake of the biggest drop in Shanghai shares in eight years.
* Chinese shares tumbled more than 8 percent as an unprecedented government rescue plan to prop up valuations abruptly ran out of steam, raising doubts about the viability of Beijing’s efforts to stave off a deeper crash.
* Commodity prices resumed their downward spiral with the broader Thomson Reuters CRB commodities index hitting its lowest in six years and oil prices hitting a four-month low.
* Chinese ADRs were set for a rough start with Alibaba , Baozun and Sohu.com off between 2 percent and 5 percent.
* The S&P 500 and Nasdaq posted their largest weekly drops since March on Friday as slowing global growth dragged commodity-related stocks lower.
* Earnings season continues with big oil, social media stocks and pharma companies scheduled to report this week.
* Second-quarter S&P 500 earnings have been mixed, with 74 percent of companies beating analysts’ profit expectations but just 52 percent surpassing revenue expectations, according to Thomson Reuters data.
* Adding to the concerns regarding lukewarm earnings, the S&P 500 is relatively expensive, trading at 16.9 times forward 12 months’ earnings, above the 10-year median of 14.7 times, according to StarMine data with only a handful of stocks fuelling recent highs.
* Investors are also keeping a sharp eye on economic data ahead of this week’s U.S. Federal Reserve’s two-day meeting, the last before September, which still looms as the first possibility for an interest rate increase.
* Data expected today includes numbers for non-defense capital goods orders, excluding aircraft at 8:30 a.m. ET (1230 GMT) and a closely watched proxy for business spending plans is expected to have risen 0.4 percent in June at 10:30 a.m. ET.
* Teva Pharmaceutical’s shares jumped 14.2 percent to $70.60 in premarket trading after it agreed to buy Allergan generic drugs business for $40.5 billion, giving up on its bid to buy Mylan. Allegran was up 10.3 percent at $340 while Mylan fell 11.8 percent to $58.08.
* Fiat Chrysler was down 2.2 percent at $14.81 after the U.S. auto safety watchdog, National Highway Traffic Safety Administration, announced a $105 million fine against the automaker over lapses in its safety recalls.
Futures snapshot at 7:22 a.m. ET:
* S&P 500 e-minis were down 11.75 points, or 0.57 percent, with 170,850 contracts traded.
* Nasdaq 100 e-minis were down 33 points, or 0.72 percent, on volume of 24,687 contracts.
* Dow e-minis were down 108 points, or 0.62 percent, with 21,770 contracts changing hands. (Editing by Don Sebastian)